Please read the important information below before continuing to our website

The Lyxor ETFs on this website may be restricted for certain individuals or in certain countries pursuant to the national regulations applicable to those individuals or countries. It is therefore your responsibility to ensure that you are authorised to invest in the Lyxor ETFs on this website.

If you are an investor in the United Kingdom, please go to www.lyxoretf.co.uk

If you are an investor in the Netherlands, please go to www.lyxoretf.nl

If you are an investor in Italy, please go to www.lyxoretf.it

If you are an investor in Spain, please go to www.lyxoretf.es

If you are an investor in Austria, please go to www.lyxoretf.at

If you are an investor in Germany, please go to www.lyxoretf.de

If you are an investor in Singapore, please go to www.lyxoretf.com.sg

If you are an investor in Switzerland, please go to www.lyxoretf.ch

If you are an investor in Belgium, please go to www.lyxoretf.be

If you are an investor in Poland, please go to www.lyxoretf.pl

If you are an investor in Norway, please go to www.lyxoretf.no

If you are an investor in Denmark, please go to www.lyxoretf.dk

If you are an investor in Luxembourg, please go to www.lyxoretf.lu

If you are an investor in Sweden, please go to www.lyxoretf.se

If you are an investor in Finland, please go to www.lyxoretf.fi

The Lyxor ETFs on this website are undertakings for collective investment in transferable securities (UCITS) (i) domiciled in France and approved by the Autorité des Marchés Financiers (AMF) or, (ii) domiciled in Luxembourg, approved by the Commission de Surveillance du Secteur Financier (CSSF) and authorised to market their units or shares in the French Republic in accordance with the notification procedure under Article 93 of Directive 2009/65/EC. Investors should note that the prospectuses of certain Lyxor ETFs under Luxembourg law that have been notified in accordance with this procedure are only available on the website in English. A French translation of these prospectuses can be obtained upon request by sending a letter to Lyxor International Asset Management (“Lyxor”) – 17 Cours Valmy, 92987 Paris La Défense, France.

The information on this website is not intended for persons or entities that are resident, located or registered in jurisdictions that are not authorised to distribute Lyxor ETFs. As a result, the information on this website does not constitute an offer or solicitation to buy or sell units or shares in these ETFs by anyone in any jurisdiction:

(a) in which such an offer or solicitation is unauthorised;

(b) in which Lyxor is not qualified to make such an offer or solicitation; or

(c) in which it is unlawful to make such an offer or solicitation.

In particular, the Lyxor ETFs on this website are not and will not be registered under the United States Securities Act of 1933, as amended. As such, they may not be offered or sold within the United States of America, except in specific cases where transactions are exempt from registration under the Securities Act. The ETFs listed on this website may not be sold to US citizens or transferred to the United States by any other means, unless this transaction is not subject to any specific registration under US law.

Any person from a jurisdiction to which the above-mentioned restrictions apply should inform themselves of and observe these restrictions.

This website is intended for commercial purposes and is not regulatory in nature. Although the information provided has been drawn up on the basis of sources considered to be reliable, there is no guarantee that it is accurate, complete or relevant. Some of the information on this website is provided on the basis of market data collected at a specific time and may therefore vary over time. Lyxor advises investors to read the risk factors section of the prospectus and the key investor information document carefully. These documents can be found on the website.

The net asset value (“NAV”) of Lyxor ETFs may at any time be subject to considerable price fluctuations, which in some cases may lead to the loss of all of the capital invested. Investors should note that some ETFs may be sensitive to fluctuations in the exchange rate between their reference currency and that of the underlying index, as well as of the components of the underlying index.

Before investing in a Lyxor ETF, you should carry out your own risk analysis of the product from a legal, tax and accounting perspective, rather than basing your decision solely on the information provided. If necessary, you should consult your own advisers or any other qualified professional.

Subject to compliance with the legal obligations by which they are bound, Lyxor or any entity within the same group shall not be held liable for any financial or other consequences of an investment in the product.

By clicking on institutional or individual above, I confirm that I have read and understood the information provided herein, and that I am resident or registered in Luxembourg.

A private investor is a self directed retail client who is making investment decisions on their own behalf in their personal stock broking account, Self Invested Personal Pension or individual savings account

A financial Adviser is a qualified investment professional who provides financial advice or guidance to investors based on their own personal financial situation and risk profile

A professional client is a client that is either a per se professional client or an elective professional client (Note article 4 (1) 12 of Mifid ):

An entity required to be authorised or regulated to operate in the financial markets. The following list includes all authorised entities carrying out the characteristic activities of the entities mentioned, whether authorised by an EEA State or a third
country and whether or not authorised by reference to a directive:

a credit institution

an investment firm

any other authorised or regulated financial institution

an insurance company

a collective investment scheme or the management company of such a scheme

a pension fund or the management company of a pension fund

a commodity or commodity derivatives dealer

a local

any other institutional investor

In relation to MiFID or equivalent third country business, a large undertaking, meeting two of the following size requirements on a company basis:

balance sheet total of EUR 20,000,000

net turnover of EUR 40,000,000

own funds of EUR 2,000,000

In relation to business that is neither MiFID or equivalent third country business, a large undertaking meeting either of the following conditions:

a body corporate (including a limited liability partnership) which has (or any of whose holding companies or subsidiaries has) called up share capital of at least £10 million (or its equivalent in any other currency at the relevant time)

a large undertaking that meets (or any of whose holding companies or subsidiaries meets) two of the following tests: (i) a balance sheet total of EUR 12,500,000; (ii) a net turnover of EUR 25,000,000;
(iii) an average number of employees during the year of 250

a national or regional government, a public body that manages public debt, a central bank, an international or supranational institution (such as the World Bank, the IMF, the ECP, the EIB) or another
similar international organisation.

another institutional investor whose main activity is to invest in financial instruments (in relation to the firm's MiFID or equivalent third country business) or designated investments (in relation
to the firm's other business). This includes entities dedicated to the securitisation of assets or other financing transactions

The above definition is only an extract and is not exhaustive. For further details please refer to the Glossary section of the FSA Handbook: https://www.handbook.fca.org.uk/handbook/glossary/

The information on this website is published by Lyxor Asset Management UK LLP (Lyxor UK), a member of the Société Générale group of companies ("Lyxor UK Group"). Lyxor UK is authorized by Financial Conduct Authority in the UK, under FCA Registration Number
435658.

You should note that an investment in any of these Exchange Traded Funds will not be covered by the provisions of the Financial Services Compensation Scheme, or by any similar scheme.

Although information contained herein is from sources believed to be reliable, Lyxor UK makes no representation or warranty regarding the accuracy of any information. Any reproduction, disclosure or dissemination of these materials is prohibited. This site is maintained by Lyxor UK, 1 Bank Street, Canary Wharf, London, E14 4SG.

A number of technical terms are used on this website. If you are in any doubt as to the meaning of such terms, then you should first consult Academy section. There is also a FAQ function which explains some of the terms contained in the website. If you
require further clarification please do not hesitate to contact us directly on info@lyxoretf.co.uk, or call 0800 707 6956.

INVESTMENT RISKS

The Lyxor UCITS ETFs described on this website are not suitable for everyone. Investors capital is at risk. Investors should not deal in this product unless they understand,
having obtained independent professional advice where necessary, its nature, terms and conditions, and the extent of their exposure to risk. The value of the product can go down as well as up and can be
subject to volatility due to factors such as price changes in the underlying instrument and interest rates. If a fund is quoted in a different currency to the index, currency risks exist. Prior to any investment in any Lyxor UCITS ETF, you should make your own appraisal of the risks from a financial, legal and tax perspective, without relying exclusively on the information provided by us. We recommend that you consult your own independent professional advisors (including legal, tax, financial or accounting advisors, as appropriate)

SPECIFIC RISKS

Counterparty risk:
Through Lyxor UCITS ETFs, investors are exposed to counterparty risk resulting from the use of OTC swaps with Société Générale. Pursuant to the UCITS Directive 2009/65/EC (as may
be amended), the exposure of a UCITS to a swap counterparty which is a credit institution for the purpose of the Directive, cannot exceed 10% of the total fund assets. It is recommended that potential investors
study the fund prospectus before investing.

As of March 2020, the long term, senior, unsecured debt obligations of Société Générale were rated A by Standard and Poor’s Ratings Services (S & P) and A2 by Moody’s Investor’s Services Inc (Moody’s). Companies are rated by S&P from AAA (highest
rating / most secure) to D (lowest rating / in default / most risky), and by Moody’s from Aaa (highest rating / most secure) to C (lowest rating / in default / most risky).

Liquidity risk:​
Société Générale is not the only market-maker for Lyxor UCITS ETFs. Société Générale and any other market makers supporting Lyxor UCITS ETFs on exchange must follow the respective
London Stock Exchange (LSE) requirements and guidelines. On-exchange liquidity may be limited as a result of a suspension in the underlying market represented by the index tracked by the ETF; a failure in
the LSE, Société Générale or other market-maker systems; or an abnormal trading situation or event.

PRODUCT SPECIFIC RISK FACTORS

Capital at Risk
ETFs are tracking instruments: Their risk profile is similar to a direct investment in the Benchmark Index. Investors’ capital is fully at risk and investors may not get back the
amount originally invested. Investments are not covered by the provisions of the Financial Services Compensation Scheme ("FSCS"), or any similar scheme.

Counterparty Risk
Investors may be exposed to risks resulting from the use of an OTC (over the counter) Swap with Lyxor UK. Physical ETFs may have Counterparty Risk resulting from the use of a Securities
Lending Programme.

Currency Risk
ETFs may be exposed to currency risk if the ETF or Benchmark Index holdings are denominated in a currency different to that of the Benchmark Index they are tracking. This means that
exchange rate fluctuations could have a negative or positive effect on returns

Replication Risk
ETFs are designed to replicate the performance of the Benchmark Index. Unexpected events relating to the constituents of the Benchmark Index may impact the Index provider’s ability
to calculate the Benchmark Index, which may effect the ETF’s ability to replicate the Benchmark Index efficiently. This may create Tracking Error in the ETF.

The Benchmark Index of a Lyxor ETF may be complex and volatile. When investing in commodities, the Benchmark Index is calculated with reference to commodity futures contracts which can expose investors to risks related to the cost of carry and transportation.
ETFs exposed to Emerging Markets carry a greater risk of potential loss than investment in Developed Markets as they are exposed to a wide range of unpredictable Emerging Market risks.

Liquidity Risk
On-exchange liquidity may be limited as a result of a suspension in the underlying market represented by the Benchmark Index tracked by the ETF; a failure in the systems of one of
the relevant stock exchanges, Lyxor UK or other Market Maker systems; or an abnormal trading situation or event.

The Sub-Funds are recognised Collective Investment Schemes for the purposes of Section 264 of the Financial Services and Markets Act 2000 (the "FSMA") and the Prospectus is available to the general public in the United Kingdom on this website. You are
advised that most, if not all, of the protections provided by the United Kingdom regulatory system generally and for UK authorised funds do not apply to recognised funds such as these Sub-Funds

The information on this website is published in the UK by Lyxor Asset Management UK LLP (Lyxor UK), which is authorized by the Financial Conduct Authority in the UK, under FCA Registration Number 435658.

The website is hosted by on Microsoft Azure servers.

This website is subject to French law and English Law

Lyxor and Lyxor ETF are names used by Lyxor Asset Management UK LLP to promote the products of Lyxor International Asset Management. Although information contained herein is from sources believed to be reliable,
Lyxor Asset Management UK LLP makes no representation or warranty regarding the accuracy of any information. Any reproduction, disclosure or dissemination of these materials is prohibited.

This website is published by Lyxor International Asset Management (LIAM), a simplified joint stock company (société par actions simplifiée) with capital of 1,059,696 euros, listed on the Nanterre Trade and Companies
Register under the single identification number 419,223,375 and EPA number 6630Z.

This website is hosted on Microsoft Azure servers.
This website is subject to French law.

Professional regulation

LIAM is a French asset management company approved by the AMF (17 place de la Bourse 75082 Paris Cedex 02) under the UCITS (2009/65/EC) and AIFM (2011/31/EU) directives.

Site content

LIAM endeavors to ensure the accuracy and updating of information on this website, and reserves the right to modify the content at any time without notice. LIAM cannot however guarantee its completeness or the
absence of modification by a third party (intrusion, virus). Moreover, LIAM accepts no liability in case of difficulty or inability to access the website due to an internet connection problem.

As such, LIAM does not accept liability for any consequential damages such as, but not limited to, losses arising from transactions made on the basis of the information, loss of profit, loss of business, loss
resulting from an interruption of service, increased costs of access and information processing.

Similarly, LIAM cannot be held liable for factors beyond its control or any damage that may be suffered by your technical environment, including your computers, software, network equipment (modems, phones, etc.)
and any equipment used to access or use the service and/or information.

Finally, LIAM cannot guarantee, and accepts no liability as regards the sequence, accuracy, absence of errors, veracity, currency, merchantability, quality, correctness or non-infringing character and availability
of the information on this website.

You undertake to use the information contained on this website for personal, non-commercial purposes.

Information on products and services

The products and services offered by LIAM are not available in all jurisdictions, notably due to regulatory constraints. The terms and conditions relative to products and services (if any) are indicative. The
information regarding products and services does not constitute on the part of LIAM or any of its affiliates either an offer to buy, sell or subscribe for financial products or services, or the solicitation
of an offer to buy or sell.

LIAM assumes no liability for the accuracy, completeness or adequacy of the information derived from external sources, although the information is obtained from sources deemed reliable.

WHEN PAST PERFORMANCE OR SIMULATED PAST PERFORMANCE IS PRESENTED, THE DATA RELATED THERETO REFER TO PAST PERIODS, AND ARE NOT RELIABLE INDICATORS OF FUTURE RESULTS. THE SAME APPLIES TO VARIATIONS IN HISTORICAL
MARKET DATA.

When simulations of future performance are presented, the data relative to these performances are only predictions, and are not a reliable indicator of the future performance of the product. Moreover, where
past performance or simulated past performance are based on data expressed in a currency that is not that of the state of residence of the investor, potential gains may increase or decrease based on changes
in exchange rates. Finally, where past performance or simulated performances (past or future) are presented, any gains can also be reduced by the effect of commissions, fees or other charges borne by the
investor.

Anyone wishing to obtain any of the services or products presented on this website is requested to contact LIAM to inquire about the availability of the service or product in question, and the contractual terms
and rates applicable to it.

Subscription of products and services

As part of its legal and regulatory obligations (including those resulting from the European directive on Markets in Financial Instruments – MIFiD), LIAM may be required, depending on the type of products it
offers and the classification it assigns you, to verify the suitability or appropriateness of the financial instruments in relation to your hedging or investment objectives, your knowledge and your experience.

Without prejudice to the legal or regulatory obligations borne by LIAM, investors should, before investing in the product or concluding any transaction relating thereto, conduct their own analysis of the product
and its risks, especially in respect of legal, tax and accounting aspects, without relying solely on information provided to them. Investors should consult, if they deem it necessary, their own advisors
or any other professional on this matter. Subject to compliance with its legal and regulatory requirements, LIAM shall not be held liable for the financial consequences of any nature whatsoever arising from
any transaction relating to the product or any investment in the product.

Any online application for subscription to a product or service offered by LIAM is only valid after acceptance by it, and involves the submission of the transaction to contractual and tariff conditions, as well
as to French law.

Intellectual property

The entire website is covered by French and international copyright, trademark and, more generally, intellectual property law, both in terms of its form (choice, plan, layout of materials, means of access to
data, organization of data, etc.), and in respect of each element of its content (text, images, etc.). The content appearing on the pages of this website is the exclusive property of LIAM. You further undertake
not to use such content and not to allow anyone else to use this content for illegal purposes.

Exceptionally, some content (text, images) may be the property of its respective authors.

Any reproduction, distribution or redistribution in whole or in part of the content of this website in any form or by any means whatsoever (including by caching or framing), or any sale, resale, retransmission
or distribution to third parties in any way whatsoever is prohibited. Failure to comply with this prohibition constitutes an infringement that may result in civil and criminal penalties.

The hypertext links to other websites do not engage the liability of LIAM, particularly as regards the content of these websites.

LIAM is not responsible for hypertext links pointing to this website, and prohibits any person from establishing such a link without its express consent.

Marketing Restrictions and Implications

Lyxor UCITS compliant Exchange Traded Funds (Lyxor UCITS ETFs) referred to on this website are open ended mutual investment funds (i) established under the French law and approved by the Autorité des Marchés Financiers (the
French Financial Markets Authority), or (ii) established under the Luxembourg law and approved by the Commission de Surveillance du Secteur Financier (the Luxembourg Financial Supervisory Committee).
Most, if not all, of the protections provided by theUK regulatory system generally and for UK authorised funds do not apply to these exchange traded funds (ETFs). In particular, investors should note that
holdings in this product will not be covered by the provisions of the Financial Services Compensation Scheme, or by any similar scheme in France.

This website is exclusively intended for persons who are not "US persons", as such term is defined in Regulation S or the US Securities Act 1933, as amended, and who are not physically present in the US. This
website does not constitute an offer or an invitation to purchase any securities in the United States or in any other jurisdiction in which such offer or invitation is not authorised or to any person to
whom it is unlawful to make such offer or solicitation. Potential users of this website are requested to inform themselves about and to observe any such restrictions.

However, most Lyxor UCITS ETFs follow synthetic replication process. This consists of entering into a derivative transaction (a ‘Performance Swap’, as defined below) with a counterparty that provides complete
and effective exposure to its benchmark index. Lyxor has adopted this methodology in order to minimise tracking error, optimise transaction costs and reduce operational risks.

A Performance Swap is a contractual agreement which is negotiated over-the-counter (OTC) between two parties: the Lyxor UCITS ETF and its counterparty. From a risk perspective, each Performance Swap ranks equally
with other senior unsecured obligations of the counterparty, such as common bonds (i.e., same rights to payments). In the Performance Swap, the counterparty of the Lyxor UCITS ETF commits to pay the Lyxor
UCITS ETF a variable return based on a pre-determined benchmark index, instead of a fixed stream of income (as in bonds). At the same time, the counterparty will receive from the Lyxor UCITS ETF the performance
and any related revenues generated by the basket's assets (excluding the value of the Performance Swap) held by the Lyxor UCITS ETF. Information provided on individual ETFs includes data on the basket relating
to the ETF and the percentage value of the basket represented by each asset. The information is relevant to the closing values on the date given.

Tax

Any statement in relation to tax, where made, is generic and non-exhaustive and is based on our understanding of the laws and practice in force as of the date of this document and is subject to any changes in
law and practice and the interpretation and application thereof, which changes could be made with retroactive effect. Any such statement must not be construed as tax advice and must not be relied upon. The
tax treatment of investments will, inter alia, depend on an individual’s circumstances. Investors must consult with an appropriate professional tax adviser to ascertain for themselves the taxation consequences
of acquiring, holding and/or disposing of any investments mentioned on this website.

Any fund prospectus and supplements are available at www.lyxoretf.co.uk. Information given about the past performance of the funds is no guarantee of
future performance. No investment decision should be taken without reading the fund prospectus and the key information document available of the fund concerned.

Although the content of the website is based upon information that Lyxor UK consider reliable or comes from sources that Lyxor UK consider reliable, Lyxor UK has not verified such information. Lyxor UK make
no representation or warranty as to the accuracy, completeness or adequacy of any information. Any reproduction, disclosure or dissemination of the materials available on the website is prohibited.

This document has been edited with the free version of the instant HTML edior. Try it here and use it every time for your projects.

IMPORTANT INFORMATION

Any third-party advertising, information and referral buttons containing hyperlinks are not recommendations or endorsements by Lyxor UK or its respective directors, affiliates or employees. The user is referred to the relevant third party for all relevant
information, including complete information on that entitys investment adviser or dealer licensing status (if applicable).

All reasonable care has been taken by Lyxor UK to ensure that all statements of fact and opinion contained in the materials provided by a third party are fair, clear and not misleading. Nevertheless, Lyxor UK makes no representation or warranty regarding
the accuracy of any third party information and is not responsible for third party content in any way.

UK residents only.
This site is intended for Professional Clients who intend to trade in Lyxor UK Exchange Traded Funds in the United Kingdom. It is not provided to any person who is a resident of any
other country.

You should note that holdings in this product will not be covered by the provisions of the Financial Services Compensation Scheme, or by any similar scheme. In particular, the investments can be neither offered nor transferred in the United States.

No investment advice
Nothing in this website constitutes advice on the merits of buying, or selling a particular investment or exercising any right conferred by the products described. Lyxor UK does not
offer investment advice in respect of these products. Unless you are an institutional or professional investor, you should seek independent financial advice in relation to the products contained in this
website.

Accuracy and reliability of information
The information in this website is, to Lyxor UKs knowledge, reliable and accurate but this cannot be guaranteed. The views of Lyxor UK reflected in this website may change without
notice. Figures included in this website take no account of personal tax liability.

No investment decision should be taken without reading the Legal Documents relating to the particular Exchange Traded Fund concerned. A copy of the Legal Documents may be obtained from Lyxor UK at SG House, 1 Bank Street, Canary Wharf, London, E14 4SG upon request.

Disclosure of interest
Lyxor UK or its associates may from time to time have a position, or material interest in the products described in this website or the investments underlying them.

Generally Lyxor UK will be the only market maker in the Exchange Traded Funds discussed and will or may have provided significant advice in relation to the Exchange Traded Funds and the investments underlying them.

This is the privacy and cookies policy for the Lyxor ETF website, which is operated by Lyxor Asset Management UK LLP (Lyxor UK).

Collection of your information

Lyxor UK may obtain personal information about you during the course of your participation with the Lyxor ETF website, sometimes through the use of on-line or off-line forms.

Use of your information

The information you voluntarily provide us through this website or email (which may include your name, company, address and contact details such as your telephone number, email address or fax number) will
be used for the following purposes:

to send you information and updates about products on the Lyxor ETF website;

to satisfy your requests, such as publications or information relating to Lyxor ETF;

to respond to your query if you have emailed us with an enquiry (for example, in relation to any Lyxor ETF or a forthcoming publication or event);

to send you further information and marketing materials about our services, products, publications, events or keep you informed through our periodic newsletters provided that you have indicated that
you are happy to be contacted for these purposes.

Who do we share your information with?

We may (to the extent necessary) pass your personal information to members of the Societe Generale Group and Lyxor UK’s partners, providers, and subcontractors (for whom we remain responsible in this regard)
who assist us in providing the services we offer, such as fulfilling requests for information, receiving and sending communications, updating marketing lists, analysing data, providing support services
or in other tasks from time to time. Our agents and contractors will only use your information to the extent necessary to perform their functions.

In the event that we undergo re-organisation or are sold to a third party, you agree that any personal information we hold about you may be transferred to that re-organised entity or third party.

We may disclose personal information about you if required to do so by law enforcement or other government or regulatory bodies and their officials or to third parties in connection with an investigation
of fraud, intellectual property infringement, breach of any law or other activity that is illegal or which may expose us to legal liability, or in order to protect our rights and property.

International Transfers

Your personal data may be processed by staff operating outside the European Economic Area ("EEA") or your local jurisdiction who work for us or for one of our suppliers chosen for their expertise in certain
areas. This may, for example, happen if one or more of our servers are from time to time located in a country outside the EEA or one of our service providers is located in a country outside the EEA.
If we transfer your information outside the EEA in this way, we will take steps to ensure that your privacy rights continue to be protected

What are Cookies and how are they used?

This policy explains how our website uses Cookies. It forms part of the important information and the terms and conditions of our website.

A cookie is a small file, typically of letters and numbers, downloaded on to a device when the user accesses certain websites. Cookies allow this website to recognise your computer throughout your session.

The Lyxor ETF website uses a combination of the types of cookies listed below:​

What cookies do we use?

What is the purpose of the Cookie?

What is the shelf life?

JSESSIONID

These cookies are used to customise the visitor experience and save the user preferences by linking it to the website account.

Session

_ga

This cookie name is asssociated with Google Universal Analytics - which is a significant update to Google's more commonly used analytics service.

This cookie is used to distinguishes unique users by assigning a randomly generated number as a client identifier.

2 Years

_gat

This cookie name is associated with Google Universal Analytics, according to documentation it is used to throttle the request rate - limiting the collection of data on high traffic
sites.

10 minutes

disclaimerinstit

These cookies are used to remember if the visitor has accepted the disclaimer for institutional profile

1 Month

​

​How do I set my cookie preferences?

Most web browsers allow some control of most cookies through the browser settings.

You may also delete and block all cookies from the Lyxor ETF Website but parts of the Lyxor ETF website may not work.

To find out more about cookies, including how to see what cookies have been set and how to manage and delete them, visit www.aboutcookies.org or www.allaboutcookies.org.

Other websites

The Lyxor ETF website may, from time to time, contain links to and from the websites of our partners, advertisers or other websites providing relevant information. If you follow a link to any of
these websites, please note that these websites have their own privacy policies and that we do not accept any responsibility or liability for these policies. Please check these policies before
you submit any personal data to these websites.

Your rights of access and rights to modify your personal information

You have the right to ask for a copy of the personal information we hold about you in our records by writing to Lyxor ETF, SG House, 1 Bank Street, Canary Wharf, London, E14 4SG. Alternatively, you can email info@lyxoretf.co.uk.

You also have the right, at any time, to object to the processing of your personal information, to require us to correct any inaccuracies in your information or to remove such information or to request
us not to process your personal data for marketing purposes.

You should contact us at the above address if you wish to do any of these things. We will retain in our files certain information you have requested us to remove in order to resolve future disputes,
to troubleshoot problems or to enforce the Terms. We will retain data only for the duration of the purpose for which it was obtained and may need to retain some details about you after your relationship
with Lyxor UK has ended, for example for legal and regulatory purposes.

What to do if you wish to stop hearing from us

If you no longer wish to hear from Lyxor ETF about opportunities or if any of your details change, please inform us by email at info@lyxoretf.co.uk.

Changes to our privacy policy

Any changes we may make to our privacy policy in the future will be posted on this page and, where appropriate, may be notified to you by e-mail.

By continuing to browse the site, you are agree on the use of cookies to track the number of visits.To know more about cookies policy:Click here

The coronavirus outbreak highlights a better way to invest in China

The outbreak and spread of a coronavirus from the central Chinese city of Wuhan has triggered a risk-off global mood. Aside from the human cost of the illness, many of the world’s biggest companies base parts of their supply chain in China, and some are warning of decreased output and revenue due to supply-chain disruption. Markets shuddered in early February but are proving resilient as the month goes on. History suggests that any further market falls may present an opportunity for long-term investors.

What’s happened?

Global markets have had a turbulent few weeks as investors digested the impact of the Wuhan coronavirus, dubbed Covid-19. Globally, there have been 73,332 cases confirmed of this variant of coronavirus, and more than 2,000 deaths. The human impact of the coronavirus has been largely confined to the Asia-Pacific region, but the commercial ramifications are already being felt across the globe, particularly in the tech and automotive sectors, as they undergo considerable supply-chain disruptions.

Among the highest-profile companies to report disruption from the virus are Apple – which has cut its sales expectations for Q2 2020 blaming store and factory closures – and South Korean tech company Samsung, which has been flying and sailing smartphone components into neighbouring Vietnam from China, rather than driving freight across the restricted land border between the countries.

EM investors in the MSCI Emerging Markets ex China Index have been partially protected from the recent sell-off, as the index has been far less volatile than its broad EM counterpart. More on this below.

What’s next?

Investor confidence is likely to continue to rise and fall over the coming weeks. Many observers believe that China has learned lessons from previous pandemics and is now much better placed to contain the latest outbreak. Although estimates for Q1 growth are declining, most expect the economy to bounce back from the damage done by the virus, encouraging for the longer-term outlook for multiple sectors even with short-term disruptions. The economic growth forecast for 2020 is estimated to be around 5.5%, down from 5.9% last month.1

Global sectors exposed to domestic Chinese growth remain vulnerable. Many businesses have shuttered temporarily for health and safety reasons. Any business involving face-to-face transactions, such as food and drink, and airlines, are particularly vulnerable. Chinese authorities are now considering direct cash infusions or mergers for the hobbled airline industry, as daily nationwide travel remains a fifth of its usual level for this time of the year. Following several high-profile outbreaks aboard cruise ships, companies operating in this industry will also remain under pressure.

Given the high number of companies with parts of their supply chain in China, there are likely to further knock-on effects announced on earnings calls for affected businesses. The tech industry may face short-term disruption, but this should have little lasting impact on tech spending in 2020. The outlook looks worse for the auto sector, which faces challenges from both the decline in domestic demand and China’s position as a key parts supplier to global auto-makers.

Viral outbreaks develop in unpredictable ways and there may be more bumps in the road over the coming weeks and months. The focus will be on China’s battle to contain Covid-19 and how the economy holds up after the extended shutdowns in the country. Further policy measures aimed at supporting activity are expected over the coming weeks.

Viral outbreaks: What history tells us

After nearly two decades of dealing with mutant viruses (e.g. the 2002/3 SARS scare), Asia has developed the infrastructure and ability needed to better contain the cross-border transmission of viruses. Many observers compare the coronavirus to the 2003 SARS epidemic. Although the Covid-19 virus is genetically similar to SARS, it appears milder in terms of illness and case fatality rate. Another related virus, known as MERS-CoV, has been spreading since 2012 and has led to death in 34% of the 2,499 cases recorded.

By contrast, an estimated 50 million people died in the 1918 Spanish flu pandemic that had a case-fatality rate of less than 5% but infected up to a third of the world’s population. Worst-case scenarios for Covid-19 should use the Asian Flu outbreak of 1957-58 (2 million deaths) or Hong Kong Flu of 1968-69 (1 million deaths) as a base case.

SARS had a time-limited negative economic impact. Visitor arrivals and retail sales stabilised within three months of the outbreak being contained.2 The history of SARS and avian flu outbreaks in China suggests that market dips may present an opportunity to buy risk assets at temporarily discounted levels.

Research conducted over recent years (e.g. by CDC Atlanta, and the World Bank) suggests that an outbreak like that of 1968-9 would today cause excess deaths in the range of 2 million to 7.4 million, with a GDP loss of $100-200bn for the US and around $550bn for all high-income countries taken together.

Investment implications

Although using history as a template for projections can be useful, China is a much bigger player in the global economy and financial markets now than it was 17 years ago during the SARS outbreak. The Chinese share of global exports has more than tripled since the start of the millennium.3 In 2003, China accounted for 8% of the MSCI Emerging Markets index; today that figure is over 34%.4

We believe an allocation to Chinese equities should be managed independently of a broader emerging equities portfolio. Adopting such an approach enables investors to take greater exposure to other markets with improving fundamentals and vary their allocation to China depending on the prevailing market conditions. More volatility for Chinese equities can be expected over the weeks ahead.

The volatility profiles of the MSCI EM and MSCI EM ex-China have been very different since the beginning of the outbreak, even though the two indices have fallen by similar amounts. The chart below shows that the volatility of the MSCI EM ex-China has been much lower relative to that of the MSCI EM in recent weeks than it has historically.

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